Global Macro: Europe's on the Upswing
The improved sentiment -- if substantiated by hard positive economic data -- may lead to higher European equities in coming weeks.
A reading of German business morale for February reached its highest level since July 2011, suggesting the European Union could grow faster in the first quarter after modest growth last year.
The survey data, released Monday, show that the economic recovery has picked up momentum the past few months, which has been great for financial markets. Still, hard economic data have yet to find solid footing. Exports, industrial output and durable goods orders all fell in December, leading some economists to warn that the economy may be diverging from the survey's findings.(FXE) and iShares Europe look to be taking a pause at overhead resistance levels as investors await policy decisions by the European Central Bank next week. IEV data by YCharts At the time of publication, the author had no position in any of the funds mentioned. Follow @macroinsights This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.
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